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Streetcar General Partnership was created in the current year with the following partner contributions: Mike contributed $110,000 cash, Alex contributed $110,000 cash, and Pat contributed

Streetcar General Partnership was created in the current year with the following partner contributions: Mike contributed $110,000 cash, Alex contributed $110,000 cash, and Pat contributed land with a tax basis of $140,000 and a fair market value of $360,000. The partnership assumed a $140,000 mortgage on the land; no partner is personally liable for the mortgage (nonrecourse liability). At the end of the current year Streetcar made a $14,000 payment on the mortgage. Mike, Alex, and Pat will split all profits and losses equally.

Sales revenue

$520,000

Cost of goods sold

410,000

Operating expenses

70,000

Long-term capital gains

2,400

Section 1231 Gains

900

Charitable contributions

700

Municipal bond interest

300

Salary paid as a guaranteed payment to Alex (not included in expense)

3,000

Using the information summarized, calculate Mikes, Alexs, and Pats initial basis in their partnership interest and the basis for each partner at the end of the current year.

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